Tesla's market value has evaporated by more than $200 billion since announcing its Bitcoin investment

According to foreign media reports, on February 8 this year, Tesla first disclosed that it had invested $1.5 billion in Bitcoin , which caused the price of this cryptocurrency to soar. However, this investment seems to have had an adverse effect on Tesla. Since then, the company's market value has fallen by 25%, with a loss of more than $200 billion.
Analysts say the main reason for Tesla's sharp drop in market value is that the company's stock is now almost tied to the price of Bitcoin, which is known for its wild price fluctuations. Investors seem to have sensed these concerns and have begun selling Tesla shares because they are worried that they could suffer huge losses if the price of Bitcoin plummets.
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Dan Ives, an analyst at Wedbush Securities, said that as Musk and Tesla actively embraced Bitcoin, investors began to tie Bitcoin and Tesla together. He said that the recent 48-hour Bitcoin sell-off and increased volatility prompted more investors to sell Tesla shares in the short term.
While the bitcoin price did initially surge by around 50% following Tesla’s investment, it has since fallen around 7% since Musk tweeted that its price seemed “a little high.”
Tesla's stock price plunge even caused Musk to lose the title of "world's richest man", giving the top spot back to Amazon founder Jeff Bezos. Tesla's stock price soared 740% in 2020, but is currently at its lowest level since it was included in the S&P 500 index in December last year, with a current market value of approximately US$620 billion. (NetEase Technology)